RETOOLING HUD RETOOLING for a CATALYTIC FEDERAL GOVERNMENT: FEDERAL for a CATALYTIC a REPORT to SECRETARY SHAUN DONOVAN SHAUN to SECRETARY a REPORT

Total Page:16

File Type:pdf, Size:1020Kb

RETOOLING HUD RETOOLING for a CATALYTIC FEDERAL GOVERNMENT: FEDERAL for a CATALYTIC a REPORT to SECRETARY SHAUN DONOVAN SHAUN to SECRETARY a REPORT RETOOLING HUD for a CATALYTIC FEDERAL GOVERNMENT: A REPORT to SECRETARY SHAUN DONOVAN RETOOLING HUD RETOOLING RETOOLING HUD for a CATALYTIC FEDERAL GOVERNMENT: A REPORT to SECRETARY SHAUN DONOVAN Penn Institute for Urban Research University of Pennsylvania February 2009 Paul C. Brophy Rachel D. Godsil Project Directors Photo credits: Cover photos: Upper left hand: Lou Jones Lower left hand: Heritage Crossing, Baltimore, MD, Courtesy of Urban Design Associates Center: Back Bay, Boston, MA, Ian Britton, freefoto.com Upper right hand: Park DuValle, Louisville, KY, Courtesy of Urban Design Associates Lower right hand: Houston, TX, flickr.com TABLE OF CONTENTS Retooling HUD Penn Institute for Urban Research for a Catalytic Federal Government: University of Pennsylvania A Report to Secretary Shaun Donovan Preface 5 Executive Summary 7 Report of the Task Forces PART 1: Providing and Preserving Housing and Housing Markets 13 Chapter 1: Preventing Foreclosures 15 Chapter 2: Improving the Private Multi-Family Housing Programs 51 Chapter 3: The “Hard to House”: Creating Housing Opportunities for those in Greatest Need 73 PART 2: Reinvigorating Places – Neighborhoods, Cities, Suburbs, and Metropolitan Areas 87 Chapter 4: Improving Communities Impacted by Foreclosures 89 Chapter 5: Strengthening America’s Neighborhoods 107 Chapter 6: New Strategies for a Metropolitan America: Extending HUD’s Urban and Regional Mission 119 Chapter 7: A City-Focused Economic Development Agenda for the Federal Government and HUD 133 Chapter 8: Anchor Institutions as Partners in Building Successful Communities and Local Economies 147 PART 3: Building HUD’s Capacity and Developing New Initiatives 169 Chapter 9: Facilitating Green Housing 171 Chapter 10: Catalyzing Change at HUD: Building a More Effective Department 189 Appendices 203 Appendix 1: Project Directors and Task Force Members 205 Appendix 2: Acronym Definitions 209 Appendix 3: About the Sponsors 213 Retooling HUD Preface 3 PREFACE Retooling HUD Penn Institute for Urban Research for a Catalytic Federal Government: University of Pennsylvania A Report to Secretary Shaun Donovan Faced with a national economic crisis that is reverberating through all of its work, but poised to react forcefully in addressing this challenge and others like global warming, the U.S. Department of Housing and Urban Development (HUD) has an opportunity to reposition itself as a 21st century engine of innovation in U.S. metropolitan areas. With the thoughtful leadership of its new Secretary, Shaun Donovan, HUD can take advantage of its more than forty years of experience to focus on key strategic initiatives outlined in this document. HUD can refine its mission, making it more suited to today’s conditions; it can redesign its programs accordingly; and it can fashion its administrative structure to accomplish these goals. Retooling HUD for a Catalytic Federal Government: A Report to Secretary Shaun Donovan offers important advice on how to approach today’s challenges. It is comprised of reports by ten task forces, led by Paul C. Brophy and Rachel D. Godsil, and reflects the work of more than 50 members, drawn from practice and the academy, who have urban and metropolitan policy and housing experience spanning many decades. Its recommendations emanate from these experts’ passionate concern for, and deep intellectual interest in metropolitan areas. The document seeks to advance HUD’s mission and the public good – not any particular point of view or set of interests. This report reinforces HUD’s concern for providing a decent home for every American and strengthening cities but also calls for HUD to create new opportunities – to promote greening, target revitalization efforts, partner meaningfully with sister agencies, leverage anchor institutions, and include a regional perspective. Bold, innovative, and strategic, the collective recommendations offer HUD a powerful roadmap for a new federal government’s role in housing and urban development. The Penn Institute for Urban Research has been proud to sponsor this work. We are immensely grateful for the work of the team leaders, Paul Brophy and Rachel Godsil, the Task Force Chairs – John Cleveland, Anne Evans, Rosanne Haggerty, Bart Harvey, Ira Harkavy, Edward Hill, Dan Kildee, Jeff Lubell, Pete Plastrik, Wendell Pritchett, Fran Stewart, Charlie Werhane, Hal Wolman, Barry Zigas – and the entire Task Force membership who produced this report in record time. Their energy, enthusiasm, and thoughtful contributions are apparent. We are also profoundly appreciative of the Rockefeller Foundation who supported this effort at a critical time. Finally, thanks are due to Penn IUR staff members, Maritza Mercado, Amy Montgomery, Daniel Stout, and Selina Zapata, for their editorial assistance. Eugenie L. Birch Susan M. Wachter Co-Directors, Penn Institute for Urban Research Retooling HUD Preface 5 EXECUTIVE SUMMARY Retooling HUD Penn Institute for Urban Research for a Catalytic Federal Government: University of Pennsylvania A Report to Secretary Shaun Donovan The election of Barack Obama as President of the United States is rightly being heralded as a major world event. He ran a transformative campaign – inviting the American people to join a movement rather than merely supporting a candidate. Now, as he begins to govern with crises at home and abroad, President Obama and those at the helm of his Administration face unprecedented challenges but also have unique opportunities. The American people have rallied behind the idea that the federal government has a critical role to play in domestic prosperity as well as national security. At the same time, Americans are engaged in the political process and eager to be part of the solutions to our country’s challenges. As a candidate, President Obama offered the vision of a renewed federal government and a revitalized role for Americans. This promise extends to the potential to transform how the federal government approaches the nation’s cities and metropolitan areas and to fundamentally rethink programs and policies to address our nation’s acute housing needs and improve the economic, social, and civic health of our cities and metropolitan areas. President Obama now has the opportunity to make good on his campaign promise that cities and metropolitan areas will not be treated as problems to be solved or as areas where constituencies have to be managed, but will be properly understood as the essential building blocks of our national economy. America’s economy is largely based on the strength of its metropolitan areas, and President Obama acknowledges the strengths, potential, and economic importance of the nation’s cities and metropolitan areas. This vision of our cities and the anticipation that the federal government can be a partner in their growth and revitalization is not itself new; but it is vastly more likely to be realized than ever before. When previous administrations have sought to engage the federal government in the work of rebuilding our cities, they have been stymied by political push-back from multiple perspectives: some argued that cities were too far gone to be worthy of investment; some that government should merely allow markets to function; and others were impatient with the slow rate of change from government programs, demanding more radical action. The perception of cities has changed in the last decade. We’ve had quite dramatic reductions in crime in major cities since the 1990s – and a reversal in the population exodus. Until very recently cities have been doing quite well. The urban unemployment rate was down, and homeownership rates for Latinos and blacks had increased. Formerly viewed as places of exceptional poverty, the poverty rate in central cities has not substantially differed from the nation’s overall poverty rate: both have been lower than in the past 25 years. We have even seen reports of improved air quality in many urban areas. These changes – combined with the economic reality that cities and metropolitan areas are the source of our economic growth and innovation – mean that President Obama’s framing of these places as essential building blocks of a robust national economy resonates in a way it may not have when crime and urban poverty were higher and more vivid a part of our picture of cities. The possibilities for federal involvement in building healthy and sustainable communities are tremendous, but the challenge of repositioning the federal government, and the U.S. Department of Housing and Urban Development (HUD) especially, to achieve this new vision, is massive. HUD needs a fundamental reorientation in its approach and a concomitant increase in its capacity if it is to continue to emphasize its critical housing role while building its capacity to work in partnership with state and local governments, local stakeholders, and citizens to improve neighborhoods, cities, suburbs, and metropolitan areas. Retooling HUD Executive Summary 7 Responding to the nation’s immediate challenges will require establishing the policies, programs, and systems that permit HUD to become a successful partner with state and local governments and with the private sector (for-profit and non-profit) to improve the economy of our metropolitan areas, to bring HUD into the role of helping to solve the foreclosure crisis upon the nation, to reposition HUD’s housing production and finance programs, and to enlist our citizenry in the work of community building. After considerable communication with members of the HUD Transition Team and
Recommended publications
  • Fraud Is Fun Or How a Foreclosure Rescue Scam Changed My Life
    Fraud Is Fun or How a Foreclosure Rescue Scam Changed My Life Peter A. Holland We are an association of trial lawyers seeking justice were raised there. Her mother died there. Mary told me that for our clients and for society. As such, we study diligently she earned $50,000 a year, and that the house was mostly paid “how” to try a case. Get the documents. Note the depositions. for – she had over $100,000 in equity in that house. Subpoena the witnesses. Anticipate the objections. Know the Now my stomach is grumbling, but I have to ask: “How judge. Prepare the Opening Statement. did you get into this mess which I cannot get you out of?” But before we can learn “how” to try a client’s case, we Although she was working part time at the time that I met her, should ask the big question: “why?” Specifically, we should previously she was being treated for a very aggressive breast ask at a very deep level: “Why should anyone care about this cancer. Although Mary’s employer was great to her, after her client and this case”? If we cannot articulate the answer this surgery, rehabilitation, chemotherapy and brief relapse, she question, then we can never truly “win” the case. Why we care about a cause can – and should – direct how we try the case. got laid off from work. She fell behind in her mortgage. Getting in touch with the why instead of obsessing on With nowhere to move to, and with the looming the how can restore the creative juices and the passion to your foreclosure sale of the family homestead, Mary turned to a practice.
    [Show full text]
  • Estimating Home Equity Impacts from Rapid, Targeted Residential Demolition in Detroit, MI: Application of a Spatially-Dynamic Data System for Decision Support
    Estimating Home Equity Impacts from Rapid, Targeted Residential Demolition in Detroit, MI: Application of a Spatially-Dynamic Data System for Decision Support A Report Produced by Dynamo Metrics, LLC1 July 2015 ABSTRACT In an effort to further the goals of the Motor City Mapping Initiative, investments were made to create a data architecture for a spatially-dynamic decision support system in Detroit, Michigan. The data system that now exists is capable of tracking the time series dynamics of every one of the more than 384,000 parcels in Detroit between January 1st, 2011 and March 31st, 2015 on a quarterly basis (seventeen quarterly time steps for each parcel). To provide a rapidly produced and useful example of the analytic capabilities of the spatially-dynamic data system, it was used to estimate the effect of the in progress, rapidly deployed Hardest Hit Fund (HHF) demolition investment concentrated in selected areas of Detroit between April 1st, 2014 (Q2 2014) and March 31st, 2015 (Q1 2015). This study utilizes causal modeling that incorporates spatially- dynamic econometric methods in the context of a spatio-temporal treatment effects analysis to estimate the impact of the HHF Blight Elimination Program implementation on single-family home values in Detroit. Using the year prior to HHF implementation (Q2 2013 – Q1 2014) as a control for the rapid and targeted HHF implementation (Q2 2014-Q1 2015), findings suggest that home equity increases of up to 13.8%2 exist for single-family homes that sold inside HHF demolition zones (HHF Zones) after the implementation of the HHF Blight Elimination Program.
    [Show full text]
  • 2003 Annual Housing Activities Report
    Opening Doors for America’s Families Freddie Mac’s Annual Housing Activities Report for 2003 March 15, 2004 Freddie Mac’s Annual Housing Activities Report March 15, 2004 Page 1 About this Report Freddie Mac provides this report to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives and the Secretary of Housing and Urban Development (HUD), in fulfillment of the Federal Home Loan Mortgage Corporation Act (“the Freddie Mac Act”)1 and regulations issued by HUD (“the Final Rule”).2 This report describes Freddie Mac’s central role in the housing finance system and housing finance activities in 2003, including information Freddie Mac is required to report under the Freddie Mac Act and the Final Rule.3 This report provides a comprehensive picture of Freddie Mac’s secondary mortgage market activities and the benefits we provide to the housing finance system and to America’s homeowners and renters. Although 2003 was a challenging year for Freddie Mac in many respects, our service to the homeowners and the housing finance system was stronger than ever. Our mortgage purchases enabled millions of families to obtain low-cost mortgages, strengthened the housing market and helped bolster the national economy. We met all of the housing goals and reinforced our strong commitment to increasing minority homeownership with new initiatives in support of the President’s goal. Freddie Mac is proud of the role we play in making the world’s best housing finance system even better for America’s families. 1 12 U.S.C.
    [Show full text]
  • The Detroit Housing Market Challenges and Innovations for a Path Forward
    POLICYADVISORY GROUP RESEARCH REPORT The Detroit Housing Market Challenges and Innovations for a Path Forward Erika C. Poethig Joseph Schilling Laurie Goodman Bing Bai James Gastner Rolf Pendall Sameera Fazili March 2017 ABOUT THE URBAN INSTITUTE The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Copyright © March 2017. Urban Institute. Permission is granted for reproduction of this file, with attribution to the Urban Institute. Cover image by Tim Meko. Contents Acknowledgments iv Sustaining a Healthy Housing Market 1 Demand 1 Supply 10 Credit Access 23 What’s Next? 31 Innovations for a Path Forward 32 Foreclosed Inventory Repositioning 34 Home Equity Protection 38 Land Bank Programs 40 Lease-Purchase Agreements 47 Shared Equity Homeownership 51 Targeted Mortgage Loan Products 55 Rental Housing Preservation 59 Targeting Resources 60 Capacity 62 Translating Ideas into Action 64 Core Principles for Supporting Housing Policies and Programs in Detroit 64 A Call for a Collaborative Forum on Housing: The Detroit Housing Compact 66 Notes 70 References 74 The Urban Institute's Collaboration with JPMorgan Chase 76 Statement of Independence 77 Acknowledgments This report was funded by a grant from JPMorgan Chase. We are grateful to them and to all our funders, who make it possible for Urban to advance its mission. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.
    [Show full text]
  • Regulating Home Equity Protection Companies and Contracts: Are States Making “The Best” an Enemy of “The Good”?
    University of Connecticut OpenCommons@UConn Connecticut Insurance Law Journal School of Law 2016 Regulating Home Equity Protection Companies and Contracts: Are States Making “the Best” an Enemy of “the Good”? John E. Marthinsen Follow this and additional works at: https://opencommons.uconn.edu/cilj Part of the Insurance Law Commons Recommended Citation Marthinsen, John E., "Regulating Home Equity Protection Companies and Contracts: Are States Making “the Best” an Enemy of “the Good”?" (2016). Connecticut Insurance Law Journal. 153. https://opencommons.uconn.edu/cilj/153 REGULATING HOME EQUITY PROTECTION COMPANIES AND CONTRACTS: ARE STATES MAKING “THE BEST” AN ENEMY OF “THE GOOD?” JOHN E. MARTHINSEN* *** Residential homes are the largest, most leveraged assets in most U.S. families’ portfolios. Home equity protection (HEP) contracts offer opportunities to safeguard these real estate interests. In the United States, each state decides if a HEP contract is financial guarantee insurance (FGI) and, therefore, regulated by the state laws and insurance commission rules, or non-insurance financial protection (NIFP), which may escape state and federal regulations. Because HEP contracts have the potential to provide substantial benefits to homeowners, their regulation should be designed to protect state residents and encourage the development of safe alternatives. This article explains HEP contracts, their development, and why states should treat those that require material interests as FGI. Particular focus is put on: (1) the advantages and disadvantages of HEP contracts that are linked to home price indices, (2) why linking these contracts to price indices should not disqualify them as FGI, and (3) how HEP companies engage in regulatory arbitrage by linking their policies to home price indices and claiming NIFP status.
    [Show full text]
  • Community Acceptance of Affordable Housing
    Public Policy and Leadership Faculty Publications School of Public Policy and Leadership 6-2004 Community acceptance of affordable housing C. Theodore Koebel Virginia Tech University Robert E. Lang Brookings Mountain West, [email protected] Karen A. Danielsen University of Nevada, Las Vegas, [email protected] Follow this and additional works at: https://digitalscholarship.unlv.edu/sea_fac_articles Part of the Civic and Community Engagement Commons, Policy Design, Analysis, and Evaluation Commons, Real Estate Commons, Social Policy Commons, and the Urban Studies and Planning Commons Repository Citation Koebel, C. T., Lang, R. E., Danielsen, K. A. (2004). Community acceptance of affordable housing. National Association of Realtors; Virginia Tech Center for Housing Research and Metropolitan Institute. https://digitalscholarship.unlv.edu/sea_fac_articles/350 This Report is protected by copyright and/or related rights. It has been brought to you by Digital Scholarship@UNLV with permission from the rights-holder(s). You are free to use this Report in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s) directly, unless additional rights are indicated by a Creative Commons license in the record and/ or on the work itself. This Report has been accepted for inclusion in Public Policy and Leadership Faculty Publications by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact [email protected]. NATIONAL ASSOCIATION OF REALTORS® National Center for Real Estate Research COMMUNITY ACCEPTANCE OF AFFORDABLE HOUSING Report to the NATIONAL ASSOCIATION OF REALTORS® SUBMITTED BY C.
    [Show full text]
  • The Increase in Predatory Lending and Appropriate Remedial Actions, 6 N.C
    NORTH CAROLINA BANKING INSTITUTE Volume 6 | Issue 1 Article 6 2002 The ncrI ease in Predatory Lending and Appropriate Remedial Actions Margot Saunders Follow this and additional works at: http://scholarship.law.unc.edu/ncbi Part of the Banking and Finance Law Commons Recommended Citation Margot Saunders, The Increase in Predatory Lending and Appropriate Remedial Actions, 6 N.C. Banking Inst. 111 (2002). Available at: http://scholarship.law.unc.edu/ncbi/vol6/iss1/6 This Article is brought to you for free and open access by Carolina Law Scholarship Repository. It has been accepted for inclusion in North Carolina Banking Institute by an authorized administrator of Carolina Law Scholarship Repository. For more information, please contact [email protected]. THE UNCREASE UN PREDATORY LENDING AND APPROPRIATE REMEDIAL ACTIONS MARGOT SAUNDERS' NATIONAL CONSUMER LAW CENTER2 1. Managing Attorney, National Consumer La, Center (NCLC), Washington, D.C.; B.A., 1975, Brandeis University; J.D., 1978, Unihersity of North Carolina School of Law. Prior to joining NCLC, Margot Saunders v.as the consumer specialist for North Carolina Legal Services where she represented low-income clients before the appellate courts and regulatory agencies. She also lobbied the North Carolina legislature on consumer issues. This article was originally presented as testimony before the Senate Committee on Banking, Housing and Urban Affairs on July 27, 2001. The testimony was presented on behalf of Community Legal Services of Philadelphia and the National Consumer Law Center, as well as the Consumer Federation of America (founded in 196S to adxance consumers' interests through advocacy and education), Consumers Union (the publisher of Consumer Reports), the National Association of Consumer Advocates (a non-profit corporation v%,hosz members are private and public sector attorneys, legal serices attorneys, law professors, and law students, whose primary focus involves the protection and representation of consumers), and the U.S.
    [Show full text]
  • Community Acceptance of Affordable Housing
    NATIONAL ASSOCIATION OF REALTORS® National Center for Real Estate Research COMMUNITY ACCEPTANCE OF AFFORDABLE HOUSING Report to the NATIONAL ASSOCIATION OF REALTORS® SUBMITTED BY C. THEODORE KOEBEL ROBERT E. LANG KAREN A. DANIELSEN CENTER FOR HOUSING RESEARCH AND METROPOLITAN INSTITUTE VIRGINIA TECH JUNE, 2004 TABLE OF CONTENTS 1.0 INTRODUCTION............................................................................................................... 1 2.0 AFFORDABLE HOUSING AND NIMBY.......................................................................... 11 2.1 Defining Affordable Housing ................................................................................. 12 2.2 Defining NIMBY.................................................................................................... 15 3.0 PROPERTY AND NEIGHBORHOOD IMPACTS OF AFFORDABLE HOUSING ........................ 19 4.0 APPROACHES TO OVERCOMING NIMBY...................................................................... 25 4.1 Inclusionary Housing Regulations.......................................................................... 27 4.2 Home Equity Assurance Programs ......................................................................... 33 4.3 Community Education, Advocacy and Public Relations........................................ 39 4.4 Design and Community Acceptance....................................................................... 40 4.5 Management...........................................................................................................
    [Show full text]
  • Brennan Center for Justice Foreclosures: a Crisis in Legal Representation
    B R E N N A N CENTER FOR JUSTICE foreclosures: a crisis in legal representation Melanca Clark with Maggie Barron Brennan Center for Justice at New York University School of Law about the brennan center for justice The Brennan Center for Justice at New York University School of Law is a non-partisan public policy and law institute that focuses on fundamental issues of democracy and justice. Our work ranges from voting rights to redistricting reform, from access to the courts to presidential power in the fight against terrorism. A singular institution – part think tank, part public interest law firm, part advocacy group – the Brennan Center combines scholarship, legislative and legal advocacy, and communications to win meaningful, measurable change in the public sector. about the brennan center’s access to justice project The Access to Justice Project at the Brennan Center for Justice is one of the few national initiatives dedicated to helping ensure that low-income individuals, families and communities are able to secure effective access to the courts and other public institutions. The Center advances public education, research, counseling, and litigation initiatives, and partners with a broad range of allies – including civil legal aid lawyers (both in government-funded and privately-funded programs), criminal defense attorneys (both public defenders and private attorneys), policymakers, low-income individuals, the media and opinion elites. The Center works to promote policies that empower those who are vulnerable, whether the problem is eviction; predatory lending; government bureaucracy (including, in some instances, the courts themselves); employers who deny wages; abusive spouses in custody disputes or in domestic violence matters; or other problems that people seek to resolve in reliance on the rule of law.
    [Show full text]
  • Housing Markets Economy
    531-38784_ch00_1P.qxp 1/14/09 1:00 AM Page i HOUSING MARKETS AND THE ECONOMY ___–1 ___ 0 ___+1 531-38784_ch00_1P.qxp 1/14/09 1:00 AM Page ii –1___ 0___ +1___ 531-38784_ch00_1P.qxp 1/14/09 1:00 AM Page iii HOUSING MARKETS AND THE ECONOMY Risk, Regulation, and Policy o ESSAYS IN HONOR OF KARL E. CASE Edited by EDWARD L. GLAESER AND JOHN M. QUIGLEY ___–1 ___ 0 ___+1 531-38784_ch00_1P.qxp 1/14/09 1:00 AM Page iv © 2009 by the Lincoln Institute of Land Policy All rights reserved. Library of Congress Cataloging- in- Publication Data Housing markets and the economy: risk, regulation, and policy: essays in honor of Karl E. Case / edited by Edward L. Glaeser and John M. Quigley. p. cm. Papers from a conference sponsored by the Lincoln Institute of Land Policy, held in Dec. 2007. Includes index. ISBN 978- 1- 55844- 184- 2 1. Housing—United States— Congresses. 2. Housing policy— United States— Congresses. 3. Housing—Prices—United States— Congresses. 4. Housing—Law and legislation— United States— Congresses. I. Case, Karl E. II. Glaeser, Edward L. (Edward Ludwig), 1967– III. Quigley, John M., 1942–HD7293.H678 2009 333.33'80973—dc22 2008043990 Designed by Westchester Book Composition Composed in Electra LH Regular by Westchester Book Composition in Danbury, Connecticut. Printed and bound by (printer) in (city, state). The paper is (paper name), an acid- free, recycled(?)sheet. –1___ 0___ MANUFACTURED IN THE UNITED STATES OF AMERICA +1___ 531-38784_ch00_1P.qxp 1/14/09 1:00 AM Page v Contents List of Figures vii List of Tables ix Foreword xiii GREGORY K.
    [Show full text]
  • Equity Release Products
    REPORT 59 Equity release products November 2005 EQUITY RELEASE PRODUCTS: AN ASIC REPORT Contents Executive summary..................................................4 Increase in equity release products..................................4 What are the issues for consumers?.................................5 Key messages for consumers............................................6 Regulation .......................................................................8 Conclusions and recommendations .................................9 Further work ................................................................. 10 Section 1: Overview of the equity release market .....11 What products are available?..........................................11 Section 2: Review of Australian products ............... 16 Reverse mortgages......................................................... 16 Home reversion schemes ................................................17 Shared appreciation mortgages ..................................... 19 Section 3: International experience........................22 United Kingdom............................................................. 22 United States .................................................................24 New Zealand .................................................................. 27 Section 4: Some complex issues for consumers ......29 Issues for older Australians ...........................................29 Pension, superannuation and tax implications .............. 31 Timing Issues................................................................
    [Show full text]
  • IN DEFENSE of Low-INCOME HOMEOWNERSHIP
    IN DEFENSE OF Low-INCOME HOMEOWNERSHIP Jared Ruiz Bybee* I. INTRODUCTION ......................................... 108 II. THE LENDER-BASED FRAMEWORK FOR Low-INCOME HOMEOWNERSHIP, AND ITS DEMISE... ............ ..... 111 A. Lender-based Frameworkfor Low-Income Homeownership ..... 111 B. The Illusion of Prosperity Created by Over-borrowing ........... 113 C. Some Indicate that Low-income Families Should Not Own Homes ..................................... 116 III. Low-INCOME HOMEOWNERSHIP IS STILL A WORTHY GOAL ......... 117 A. TheoreticalBasis for a Society of Homeowners.................... 117 1. TraditionalRepublicanism .................... 118 2. Communitarianism........................... 120 3. The Importance of Theory ..................... 123 B. Benefits of Homeownershipfor the Individual and Community......................................123 1. Economic Benefits to Individual Homeowners ..... ..... 124 2. Social Benefits to Individual Homeowner. .............. 125 3. Benefits to the Children of Homeowners......... ..... 126 4. Benefits of Homeownership to Community..............127 5. Benefits can be Muted for Low-Income Homeowners ........ 129 C. Homeownershipfor Low-Income Families - Is it Worth it?.......130 IV. COMMUNITY-BASED FRAMEWORK FOR HOMEOWNERSHIP OPPORTUNITIES..........................................131 A. Reliance on Community-based Organizations........ ..... 132 B. Holistic Community Development. ...................... 134 C. Increased Investment from FederalBudget ............... 135 D. A Proposal: CDBG and Homeownership.
    [Show full text]